Steadman says if a painter paints a vehicle that he knows has improper body work and the problem is not caught until the end, the shop has a good chance of missing the projected delivery date in addition to working twice on the vehicle and generating more costs for materials and rental cars.

"Certainly, negotiated lower rates with an insurance company can lead to wanting to speed up to retain profits, but it's a cause-and-effect," Steadman explains. "The shop sets the stage in accepting lower rates, and they have to be able to adjust to maintain and exceed their production and financial goals."

Lean production

All things equal, many factors can impact parts procurement and cycle times, such as bad weather, distribution difficulties and assorted infrastructure issues.

 

For example, a parts-laden ship from the mainland U.S. takes 14 days to reach Hawaii, resulting in a 21-day lead-time for ordering, and the barge serving the individual islands runs on a weekly schedule (airlifting is usually cost-prohibitive).  

An emphasis on obtaining the best cycle time among a community's lineup of shops is critical among insurers, says Steadman. "I've talked to insurance company executives and they say cycle time management is key to their business. It's the one thing they have left to control."

 

Shops must look at lean production as a solution. To a single shop and a single job, a rental car for one more day may not mean much. Yet those rentals add up when a carrier's entire national market is taken into account, Steadman says.  

A number of avenues are available to shop owners seeking to shave cycle times. Peer-based 20 Groups often tackle the topic, as do paint suppliers eager to have high-performing customers. A thriving business buys more materials. Industry consultants also offer instruction.

At JOVI, 85 percent of their clients cite cycle time as a prime area of concern. "Some shops are passing on work, or taking the work and not meeting the time constraints — which is even worse," says Steadman.  

Seven Types of Waste" in a business:
1. People movement
2. Product movement
3. Inventory
4. Rework
5. Waiting
6. Over-production
7. Over-processing

"In our world, speed equals profitability,",  "Our customers want speed, so we built a model to deliver that. You can't have speed without quality; it goes hand-in-hand.

"It's not about people working faster — it's about being more efficient. There are a lot of factors to do that successfully." Waiting means waste,  a body shop typically waits for approvals, paint, parts and technicians while a job is in progress.

The proper process begins as soon as the vehicle arrives at the shop. A car should be rolled inside for a thorough inspection designed to identify each and every needed part. Completeness at this level helps lessen the possibility of delays.